Managing the finances of even a small business takes a lot more work than you may realize. There are things that you can easily miss that can help you but also hurt you, so it’s good to have a professional CPA in San Antonio TX, like Gonzales, looking out for you. However, you should still understand the basics of small business finances and this month we look at some more tips to help you better understand what you need to know.
- You should already have a small business banking account and the next step is a small business credit card. This makes it much easier to keep track of spending and not get purchases and payments confused with personal items.
- It is important to manage your business credit. Just like personal credit, business credit is important in getting potential loans and purchases. Build up good credit by using your lines of credit with your business and paying bills on time. As with personal credit, keep an eye on it and make sure there are no discrepancies. You may also need to know your vendor’s and customer’s credit, depending on your type of business.
- Now comes the good part. Pay yourself! However, be aware that there are different processes for paying yourself depending on your type of business. The IRS has various rules you can examine, depending on the role you and others play in the company. Still don’t forget to pay yourself a reasonable compensation, as you would for any employee.
- Part of the reason for building up credit and keeping track of it is to ensure it is healthy and accurate so that you can qualify for business loans. There are numerous types of loans including small business loans, business physical disaster loans, microloan programs, and the Small Business Investment Company (SBIC) Program, just to name a few. Always read the terms and conditions so you understand what is required of you. In some cases, with certain government loans, if used properly, they can become grants.
- As you hopefully start to see your business grow, be sure to invest in that growth. As the saying goes, it takes money to make money, and it’s important to reinvest in your business to keep the growth going. Online marketing is a major focus for many small businesses as it helps to get your business out there and recognized. No matter what industry you’re in, online marketing should almost always be an area where you focus your growth investment.
- You’ve hopefully looked into the various taxes you need to pay and understand your options and requirements. There are multiple taxes, often due at different times, that you may need to pay, depending on your business entity. Among them are employment tax, estimated tax, income tax, excise tax, and self-employment tax.
Next month we’ll look further at keeping everything up to date and gaining a better understanding of your return on investment. In the meantime, if you have questions or feel like you need help, contact us today to set up an appointment. As a leading CPA in San Antonio TX, we can help ensure your small business is primed to grow and make the most of your financial dealings.
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This post was written by Gonzales Group CPA